Russia is finalizing its legislation on cryptocurrencies. While the Duma adopted the text on October 28, it is the turn of the Federation Council, the upper house of the Russian Parliament, to validate this bill which concerns the taxation of cryptocurrencies and which exempts miners from VAT . We take stock.
- Russia has finalized its cryptocurrency tax legislation, exempting miners from VAT.
- Cryptocurrencies are now considered property in Russia, with income taxation aligned with that of securities transactions.
VAT exemption for Bitcoin and cryptocurrency miners
The news was picked up by all the specialized press: the upper house of the Russian Parliament, the Federation Council, approved a bill on taxation of cryptocurrency transactions and miningessentially exempting these activities from value added tax (VAT).
The bill now awaits President Vladimir Putin’s signature to become law. For his part, the Federation Council said in a statement that it approved the amendments on October 30, after the approval of the lower house, the State Dumathe day before.
Cryptocurrencies: a property
Amendments to the tax law, proposed by the Russian government, establish digital currency as property.
According to these amendments, cryptocurrency transactions will be exempt from VAT, and income from trading will be subject to the same tax rates as income from securities transactions, with a maximum personal income tax rate of 15%.
Russia: more and more regulation for cryptocurrencies
Once enacted, this law will require operators of cryptocurrency mining infrastructure to report their customers’ information to the authorities tax, with revenues from mining being taxed based on their market value at the time of receipt.
The country therefore continues to strengthen regulations on crypto assets, in particular on cryptocurrency mining. Earlier this month, the Russian government set a limit for unregistered individuals to mine bitcoin with monthly energy consumption not exceeding 6 000 kilowattheures.
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